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Budget Mark-up Session10-05

PW:pw

At the Budget Mark-up meeting of the Board of
Supervisors of Fairfax County, Virginia, held in the Board Auditorium of
the GovernmentCenter at Fairfax, Virginia, on Monday, April 18, 2005, at 10:01 a.m., there were present:

Others present during the meeting were Anthony
H. Griffin, County Executive; David P. Bobzien, County Attorney; Catherine
A. Chianese, Assistant to the County Executive; Nancy Vehrs, Clerk to the
Board of Supervisors, Patricia Wood, Administrative Assistant, Office of
the Clerk to the Board of Supervisors; and Dianne Tomasek, Administrative
Assistant, Office of the Clerk to the Board of Supervisors.

1.10 A.M. – BOARD DECISION ON THE COUNTY'S
AND SCHOOLS' FISCAL YEAR (FY) 2005 THIRD QUARTER REVIEWAND BOARD MARKUP OF THE COUNTY EXECUTIVE'S
FY 2006 ADVERTISED BUDGET PLAN WITH REVENUE AND ADMINISTRATIVE ADJUSTMENTS
INCLUDED IN THE FY 2006 ADD-ON PACKAGE(10:01 a.m.)

(SARs)

(FPR)Following an opening statement, Supervisor Bulova moved:

·
Board approval of the FY 2005 Third Quarter Review as advertised with the amendments as
included in the document entitled “April 18, 2005, FY 2006 Budget Markup
Process”; the FY 2006 revenue and administrative adjustments as identified
in the FY 2006 Advertised Budget
Plan and the FY 2006 Add-on Memo dated April 6, 2005; and the adjustments
to the FY 2006 Budget as included in the documents entitled “April 18, 2005,
FY 2006 Budget Markup Process.”This
includes adjustments to the Managed Reserve based on the actions taken by
the Board on the FY 2005 Third Quarter
Review and the FY 2006 Budget to maintain the reserve at two percent
of total disbursements.These actions
result in a balanced budget for FY 2006.

·
Board approval of Supplemental Appropriation Resolution (SAR) AS05076 and
Amendment to the Fiscal Planning Resolution AS05901 which includes the revenue,
expenditure and transfer adjustments, and grant awards and adjustments contained
in the County’s and School's Third Quarter Review as advertised with the
approved amendments included in the document entitled “April 18, 2005, FY
2006 Budget Markup Process” and SAR AS04094 which reflects final FY 2004
audit adjustments.

(NOTE:Later in the meeting, there was a clarification
of this action.See Clerk’s Summary
Item CL#4.)

2.BUDGET GUIDELINES FOR FISCAL YEAR (FY)
2007(10:12 a.m.)

Supervisor
Bulova moved that the Board reaffirm and approve Budget Guidelines for FY
2007 as follows:

1.The Board of Supervisors directs
the CountyExecutive
to prepare a budget that will allow the Board to reduce the real estate
tax rate further in FY 2007 if real estate tax assessments and other revenues
increase significantly, as currently projected. The Board directs the CountyExecutive to maximize homeowner
real estate tax relief.

2.Information on the FY 2007 revenue
and economic outlook should be forwarded with a financial forecast to the
Board for discussion.This financial
forecast will provide the framework for the continued County-School discussion
on the budget and will help identify resources available for Board priorities,
including tax relief.The Board of Supervisors, the School Board,
and staff from both the County and FairfaxCountyPublic Schools
shall continue to work together to:

·
Identify and implement strategies to achieve and maintain excellent quality
for County and School services.

·
Limit future spending growth.

·
Reduce the impact of the rising real estate tax share of the budget for
residential taxpayers.

As
a result of this work and consistent with the direction to limit future
budget growth, the Board directs the County Executive to develop a budget
for Fiscal Year 2007 that limits increases to what is needed to accommodate
growth and cost factors, and clearly identifies funding requirements driven
by State and/or federal mandates and major County initiatives.In addition, the Board directs that increases
in the transfer to the School Operating Fund also be contained within the
same parameters as the General County Budget. Funding requirements
beyond this increase will be identified and discussed in terms of initiatives
to be undertaken if funding is available.Specific direction on targeted budget growth rates should be provided
to County staff and the School Board by the August 2005 Board meeting.

3.The Board directs that the CountyBudget presentation continue
to focus on Board priorities and County Vision Elements.The CountyExecutive
and County staff will also provide contextual information regarding the
growth in the budget, including, but not limited to, population growth,
market forces impacting the budget, demographic changes, and other primary
drivers for growth.In addition, the presentation of the budget
should include a clear identification of the resources and new initiatives
targeted for seniors, a rapidly growing group in the County’s population.

4.In order to avoid structural imbalances
between County resources and requirements, resources should be allocated
with consideration for the continued availability of these funds:

·
Non-recurring funds will be directed toward non-recurring uses.

·
Only recurring resources may be targeted toward recurring expenses.

·
The County’s Policy concerning the utilization of recurring and non-recurring
funds should be followed by the School Board.

5.Any available balances materializing
at the Carryover and Third Quarter Reviews that are not required to support
County expenditures of a critical nature or to address the Board’s policy
on the Revenue Stabilization fund should be held in reserve to offset future
requirements or to address one-time requirements such as unfunded capital
paydown projects and equipment replacement since
adequate funds are not available in the annual budget process.Funding for paydown
is necessary to meet capital renewal, streetlight, trail and sidewalk funding,
among other things, as well as to reduce reliance on debt service.In addition, balances at Carryover resulting
from resources that are recurring should be reviewed to address further
senior and disabled persons’ tax relief.

6.The Board accepts and approves the
CountyExecutive’s
recommendation that the value of one penny of the real estate tax be dedicated
on an annual basis to stormwater management projects. The Board feels that
the allocation of the equivalent of $0.01 on the real estate tax rate is
the most efficient, effective, and immediate funding source available for
this critical program.Other funding
approaches may be appropriate and are not to be ruled out for future consideration.County staff is directed to focus on implementation
of the stormwater management program.As such, and in order to maximize the impact
of the stormwater management program, staff is directed to identify a plan
and provide it to the Board on June 20, 2005, with a spending plan for the
first year of funding which focuses the majority of the funds on implementing
stormwater improvements projects.

7.The Board directs the ongoing allocation
of funding from the Athletic Services Application Fee revenue for enhanced
maintenance and the initiation of an artificial turf program.This will represent an ongoing maintenance of effort for maintaining
and enhancing athletic fields.

8.The Board directs the following reviews
of County programs:

Affordable Housing Preservation Initiatives

The
CountyExecutive
is directed to identify an allocation process before the Board's fall recess,
to be approved by the Board of Supervisors, to prioritize and monitor affordable
housing preservation initiatives funded through the annual designation of
the value of one penny on the real estate tax rate.This process should be designed to quickly
and significantly impact the availability of affordable housing in
the County within established criteria.An initial amount of $17.9 million is included in a new County fund,
Housing Flexibility, in the FY 2006 Budget for this purpose.

Public Safety AndTransportationOperationsCenter

County
staff is directed to prepare a complete briefing to the Board on the new
center including a timeframe for construction, how the center will be configured,
what agencies and organizations will occupy the space, the total project
costs, and changes to the plan since its origination prior to the execution
of the master development agreement.A
date for this meeting will be set quickly and will be provided to the Board
within the next two weeks.

Young People Concerned About Gangs

County
staff from the Department of Community and Recreation Services will work
with the County's Gang Prevention Coordinator, Board offices, representatives
of Young People Concerned about Gangs, and others, to identify and
implement strategies designed to promote gang prevention activities targeted
to the Latino population including identification of after-school activities, homework
assistance, sports, and arts and crafts activities at locations near the
population being served.

Compensation

The
Board directs the CountyExecutive
to review and make recommendations on improvements to the County’s compensation
program.These reviews should be
completed and recommendations made in time for incorporation into the FY
2007 Budget.

Specifically:

Regarding
Market-Based Compensation

The
Board’s Policy as it relates to compensation is that pay will remain market-based
and adjustments to pay shall be based on market factors, not pay parity
among public safety agencies or other County departments or agencies.However, in cases where evidence of a negative impact on recruitment
and/or retention for a specific agency or department can be supported by
data, this information, in conjunction with market data, should be provided
to the CountyExecutive
and the Board for consideration and decision.The Board directs that the CountyExecutive conduct the annual
market rate study and benchmark key County positions, (to include police
citizen aide positions), to the appropriate local and regional employment
markets.

Regarding
Public Safety Pay Plans

The
Board directs staff to undertake a comprehensive review of the public safety
pay plans.As a result of adjustments
made over the last several years, pay grades within the pay plans are compressed
making individual position class adjustments based on the market difficult.The compression between pay grades also impacts promotional opportunities
and recruitment.This review should be staffed by the chiefs
and staff of each public safety department,the Department of Human Resources, and the Department of Management
and Budget.

Regarding the Pay for Performance Program

The
Board continues to support the concept of the pay for performance system
and considers the currently established distinctions in pay between high
performing and lower performing employees as a valuable component of the
pay for performance system.No consideration
will be given at this point in time to returning to a system of annual cost-of-living
adjustments that effectively grant employees with varying performance levels
the same annual increase.The annual
market review addresses the competitiveness of the salary scales and should
continue as designed.However, a
comprehensive review of the performance rating terminology shall be undertaken
to provide more clarity regarding an employee's performance, and included
as changes, if appropriate, to the pay for performance system in FY 2007.This review should include staff identified by the CountyExecutive and representatives
of the Employee Advisory Council.

Regarding
Overtime Compensation

The Board directs
staff to review current overtime compensation policies in County departments,
including public safety agencies, and identification of strategies to control
and limit reliance on overtime to provide appropriate staffing.

Regarding Competitive
Pay for State Magistrate, Probation Officer Positions and District Court
Employees

The Board directs
staff to include the issue of inadequate pay for the magistrates, probation
officers and District Court employees, in the 2006 legislative package.This action is in recognition of the fact that
these are State positions and it is the State’s responsibility to fund pay
adjustments that are competitive for the region for these positions.

The Board directs
staff to review the various issues and requests of the employees in the
Health Department who are under the VRS.The review should be provided to the Board for consideration and
decision, and shall include alternatives and their associated impacts, as
quickly as possible.Resolution of some issues may be appropriate
as part of the FY 2005 Carryover Review and no later than the FY 2007 Budget.

Supervisor
McConnell asked unanimous consent that the Board direct staff to provide
an accounting at the end of the year regarding the County’s ability to provide
affordable housing to the County’s employees and the number served.Without objection, it was so ordered.

Following
discussion, the question was called on the motion to adopt the budget guidelines,
and it CARRIED by a recorded
vote of nine, Supervisor Frey voting “NAY.”

3.BOARD MARKUP OF THE CAPITAL IMPROVEMENT
PROGRAM (CIP) FOR FISCAL YEARS (FY) 2006–2010 (WITH FUTURE FISCAL YEARS
TO 2015)(10:20 a.m.)

Supervisor Bulova moved
approval of the FY 2006 – 2010 CIP (with future fiscal years to 2015) with
the following amendments:

·
Adjust the construction schedule for the Burke Centre Community Library
to reflect no delay associated with the Burke Virginia Railway Express interim
parking project.The completion schedule
would be similar to the proposed Oakton Community Library schedule.

·
Explore the concept of Board Members' offices being located in libraries
or other public facilities in addition to Police Stations.Opportunities may exist during renovations of libraries and other
public facilities, or new construction projects, which will provide sufficient
space for Board Member offices, enhance public access, better utilize public
facility space, and provide room for expansion at the district stations.

·Make all necessary adjustments to
reflect actions taken during the Board’s decision on the FY 2006 Adopted
Budget Plan that impact the CIP.

Supervisor
Hyland seconded the motion and it carried by unanimous vote.

4.CLARIFICATION
REGARDING THE BUDGET MOTION(10:22 a.m.)

(NOTE:Earlier in the meeting, the Board approved the
Fiscal Year 2006 Budget.See Clerk’s
Summary Item CL#1.)

Following
discussion, with input from Edward L. Long, Jr., Chief Financial Officer,
it was clarified that the main budget motion included approval of the Supplemental
Appropriation Resolutions and Fiscal Planning Resolutions, though they were
not explicitly delineated.

Supervisor
Bulova stated that there were three items on the Human Services Council’s
FY 2006 unfunded list which were totally supported by Medicaid revenues
but required the addition of positions.These items were not included in the approved package.

Supervisor
Bulova moved that the Board direct staff to review the classification of
positions which are supported by State and federal funding, specifically
as it is possible and more appropriate to treat them as grant positions.Staff is directed to return to the Board during
FY 2006, or sooner, with any recommendations.Supervisor Gross seconded the motion.

Following
discussion regarding capacity for services and the capping of the staffing
increase, with input from Anthony H. Griffin, CountyExecutive, and Susan W. Datta, Director, Department of Management and Budget, the
question was called on the motion and it carried by unanimous vote.

Supervisor
Bulova expressed appreciation to the Board; Ms. Datta
and her staff, Edward L. Long, Jr., Chief Financial Officer; and Mr. Griffin
for their efforts in producing the budget.

6.CONTRACTFUNDING FOR THE NORTHERN VIRGINIARESOURCECENTER FOR THE DEAF AND HARD OF HEARING(10:28 a.m.)

Supervisor
Gross asked unanimous consent that the Board direct staff to provide the
Board with a resolution of the issue of funding for the NorthernVirginiaResourceCenter for the Deaf and Hard
of Hearing.Without objection, it
was so ordered.

7.ITEMS FOR THE RECORD(10:29 a.m.)

Chairman
Connolly provided tallies of the 579 written communications his office received
regarding the budget.

Supervisor
Smyth stated that Anthony Tedder, the applicant
for Special Exception Application SE 2004-PR-037, requested that he be permitted
to submit his site plan for concurrent review by the Department of Public
Works and Environmental Services.He
has assured Supervisor Smyth that he fully understood that he could run
the risk of potentially having to redesign and resubmit a new site plan
if substantial design changes occurred during the special exception process.Therefore, Supervisor Smyth moved that the Board:

·
Approve concurrent processing of the site plan for the pending Special Exception
Application SE 2004-PR-037.

·
Direct staff to schedule a public hearing to be held before the Board regarding
Special Exception Application SE-2004-PR-027 before the Board on May
23, 2005.

Supervisor
DuBois seconded the motion and it carried by unanimous vote.

9.ACKNOWLEDGEMENTS(10:32
a.m.)

Chairman
Connolly thanked Budget Committee Chairman Bulova for her diligent work
on the budget and his colleagues for their civility and respect during the
budget process.Chairman Connolly
noted that the Board had approved a historic tax rate reduction, the largest
single tax rate reduction in the County’s history which would result in
the lowest tax rate in the County’s modern history.

10.CAKE BAKEOFF(10:34 a.m.)

Jointly with
Supervisor Hyland, Supervisor McConnell announced that they were having
a bake-off in the back room to determine who made the best cake.

11.FURTHER ACKNOWLEDGEMENTS(10:34 a.m.)

Chairman
Connolly thanked staff for the work they did on the budget, members of the
School Board for their cooperation, and County Executive Anthony H. Griffin
for putting together a budget that was roundly accepted early in the process.